ALCOA INC (Form: 8-K, Filing Date: 10/11/2005)pdf.secdatabase.com/2820/0001193125-05-199389.pdf ·...
Transcript of ALCOA INC (Form: 8-K, Filing Date: 10/11/2005)pdf.secdatabase.com/2820/0001193125-05-199389.pdf ·...
Business Address201 ISABELLA STALCOA CORPORATE CTRPITTSBURGH PA 15212-58584125532576
Mailing Address801 ISABELLA STALCOA CORPORATE CTRPITTSBURGH PA 15212-5858
SECURITIES AND EXCHANGE COMMISSION
FORM 8-KCurrent report filing
Filing Date: 2005-10-11 | Period of Report: 2005-10-10SEC Accession No. 0001193125-05-199389
(HTML Version on secdatabase.com)
FILERALCOA INCCIK:4281| IRS No.: 250317820 | State of Incorp.:PA | Fiscal Year End: 1231Type: 8-K | Act: 34 | File No.: 001-03610 | Film No.: 051131934SIC: 3350 Rolling drawing & extruding of nonferrous metals
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UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 10, 2005
ALCOA INC.(Exact name of Registrant as specified in its charter)
Pennsylvania 1-3610 25-0317820(State or Other Jurisdiction
of Incorporation)
(Commission File Number) (I.R.S. Employer
Identification Number)
201 Isabella Street, Pittsburgh, Pennsylvania 15212-5858(Address of Principal Executive Offices) (Zip Code)
Office of Investor Relations 212-836-2674Office of the Secretary 412-553-4707
(Registrant��s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under anyof the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02. Results of Operations and Financial Condition.
On October 10, 2005, Alcoa Inc. issued a press release announcing its financial results for the third quarter of 2005. A copy of the pressrelease is attached hereto as Exhibit 99 and incorporated herein by reference.
The information in this Current Report on Form 8-K, including Exhibit 99, is being furnished and shall not be deemed to be �filed� forpurposes of Section 18 of the Securities Exchange Act of 1934, as amended (the �Exchange Act�), or otherwise subject to the liability of thatsection, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, asamended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01.
Financial Statements and Exhibits.
(d) Exhibits.
The following is furnished as an exhibit to this report:
99 Alcoa Inc. press release dated October 10, 2005.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalfby the undersigned hereunto duly authorized.
ALCOA INC.
By:/s/ Lawrence R. PurtellLawrence R. PurtellExecutive Vice President andGeneral Counsel
Date: October 11, 2005
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EXHIBIT INDEX
Exhibit No. Description
99 Alcoa Inc. press release dated October 10, 2005.
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Exhibit 99
FOR IMMEDIATE RELEASE
Investor ContactMedia Contact
William F. OplingerKevin G. Lowery
(212) 836-2674(412) 553-1424Mobile (724) 422-7844
Alcoa Announces Income from Continuing Operations of$290 Million or $0.33 per share in Third Quarter 2005
Highlights:
� Income from continuing operations was $290 million, or $0.33 per diluted share, above prior guidance;
� Year-to-date income from continuing operations was $1.0 billion, or $1.17 per share;
� Sales increased 13 percent from the year ago quarter to $6.57 billion;
� Continued strong balance sheet performance with debt to capital ratio improving to 31.5 percent from 32.2 percent in the previousquarter;
� Cash from operations was $792 million in the quarter, before a discretionary $300 million contribution to company pension plans;and
� Strong progress executing upstream growth projects to lower long-term costs.
NEW YORK��October 10, 2005 �� Alcoa (NYSE: AA) announced today that its income from continuing operations was $290 million, or$0.33 per diluted share, in the third quarter 2005, above prior guidance and flat with the $292 million or $0.33 a year ago, and down from$466 million or $0.53 in the second quarter 2005.
As previously announced, results in the quarter were impacted by lower aluminum prices and higher input costs, particularly for energy.Seasonal weakness in Europe and automotive markets also lowered profitability. On a year-to-date basis, energy and other costs, primarilyraw materials, have increased $578 million.
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Net income in the quarter was $289 million, or $0.33, down from $460 million, or $0.52, in the previous quarter, and up from $283 million, or$0.32, in the third quarter of 2004.
�A reduced upstream pricing environment and higher energy costs affected our results this quarter,� said Alain Belda, Chairman and CEO ofAlcoa. �We have an aggressive productivity program, but it has not offset the impact of escalating costs in energy and raw materials and thespeed at which they are flowing through.
�As we combat these elements, we are also taking the right approach to ensure competitiveness for the long-term, by investing to reduce ourupstream and downstream costs, and continuing with our restructuring efforts to increase effectiveness across global businesses,� said Belda.
The sale of railroads serving Alcoa locations in the quarter resulted in a gain of approximately four cents per share, which was substantiallyoffset by losses stemming from a fire at the company�s Dover, NJ aerospace castings facility, losses in Russia, the impact of unplannedtemporary outages at the Wenatchee, WA, Pt. Comfort, TX and Lake Charles, LA, facilities, and an increase in the reserve for litigationexpenses. Most of the impact from recent Gulf coast hurricanes will be in the fourth quarter.
Sales and Balance Sheet Overview
Sales in the quarter of $6.6 billion rose 13 percent over the third quarter of 2004. Sales were down from the sequential quarter�s $6.7 billion,primarily due to lower realized alumina and aluminum prices. While metal prices have strengthened somewhat recently, that impact will bereflected in the fourth quarter. Demand for aerospace and commercial vehicle products continued their strength in the quarter.
Sales for the first nine months were $19.5 billion, a 13 percent increase from the first nine months of 2004.
Alcoa�s strong balance sheet performance continued in the third quarter. The company�s debt to capital ratio improved to 31.5 percent at theend of September from 32.2 percent at the end of the second quarter 2005. Cash from operations was $792 million in the quarter, before adiscretionary $300 million contribution to the company�s pension plans.
Restructuring Program
The company�s 2005 restructuring program, designed to reduce costs and streamline operations along global business lines, continued tomake progress. In the second quarter, the company announced the second stage of its 2005 restructuring plan, which will result in theelimination of approximately 8,100 positions and $195 million from its cost base when fully implemented over the course of 12 months.
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At the end of the third quarter, the company had eliminated more than 1,400 positions as part of that program.
The company�s return on capital stood at 8.3 percent on a trailing four quarters basis.
Update on Growth Projects
�It is critical that we continue to take steps to further position the company to be a low-cost producer for the long-term,� said Belda. �Theprojects we have underway will extend our position as the world�s leading supplier of alumina, primary metals and fabricated products andfurther improve our position on the global cost curve.� In addition to negotiations and feasibility studies underway in Trinidad, Ghana andGuinea, the company has numerous projects moving ahead, including:
Refining
Refining growth projects center on brownfield expansions of existing low-cost facilities.
� Alumar refinery expansion � The expansion will add 2.1 million metric tons per year (�mtpy�) in capacity to the low-cost refineryin Brazil. This project includes creation of a bauxite mine near Juruti in Para state, which will initially produce 2.6 million mtpy ofbauxite to supply the expansion.
� Pinjarra Efficiency Upgrade � The project will expand the low-cost Pinjarra refinery by 657,000 mtpy to more than 4.2 millionmtpy. It is scheduled to be completed in the first quarter of 2006.
� Jamalco Expansion � The company�s Alcoa World Alumina and Chemicals (AWAC) affiliate plans to expand the refinery inClarendon, Jamaica by 1.5 million mtpy, more than doubling the refinery�s capacity to approximately 2.8 million mtpy.
Smelting
Growth development work combines greenfield and brownfield smelting projects utilizing globally competitive energy sources.
� Alcoa Fjardaal in Iceland � The company continued progress building its first greenfield smelter in 20 years. The total project is on-schedule to produce its first metal in April 2007 and is approximately 30 percent complete.
� Alumar smelter expansion � The expansion will add 63,000 mtpy to 433,000 mtpy in total. 50 percent will be complete byNovember 2005, and it will be finished by the end of the first quarter of 2006.
� Warrick, Indiana power self-generation � The company began work to lower costs and ensure the ability to self-generate power tofuel its Warrick, IN smelter and rolling mill. As part of this project the company purchased the rights to mine coal in nearbyFriendsville, IL.
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� Modernization of Pocos de Caldas smelter � This Brazilian smelter will be upgraded with world-class environmental controls tolower emissions and costs, and improve operational efficiency.
Fabricating and Downstream Growth
In the quarter the company made significant progress on projects that will expand its position and lower its costs in fabricating anddownstream businesses, including:
� Receiving final approval from the Ministry of Commerce in China to establish a new joint venture with China International Trust &Investment (CITIC), its equity partner in Bohai Aluminum, to produce aluminum rolled products at the Bohai plant inQinghuangdao, China. Alcoa anticipates having the mill commissioned by 2008.
� Alcoa Fastening Systems business will create two new 50,000 square-foot manufacturing sites in the Suzhou Industrial Park, 100km from Shanghai, to support rapidly growing commercial aviation and railway/rail car production and sub-assembly in that market.
� Continued integration of the recently acquired Belaya Kalitva and Samara plants in the Russian Federation. The plants have alreadybegun the process of servicing North American automotive customers.
Segment and Other Results
(all comparisons on a sequential quarter basis, unless noted)
Alumina � After-tax operating income (�ATOI�) was $156 million. Stronger shipments were offset by lower LME based pricing. Energy costincreases of $6 million and caustic soda increases of $9 million negatively affected the results. Alumina production for the quarter was3,688 thousand metric tons (�kmt�), compared to 3,621 kmt in the second quarter of 2005.
Primary Metals - Segment profitability decreased $19 million to $168 million, primarily because of lower metal prices. In addition, thesegment was affected by the partial curtailment of production at the Wenatchee, WA facility. Higher fuel costs and higher purchasedelectricity also had an impact. Primary metal production for the quarter increased 5 kmt to 904 kmt. Third party realized metal prices wererelatively unchanged while intra-company metal prices fell due to lower priced downstream commitments. The company purchasedapproximately 189 kmt of primary metal for internal use as part of its strategy to sell value-added products.
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Flat Rolled Products - ATOI for the segment increased $11 million to $81 million. Lower Russian losses and seasonal strength in the can sheetmarket were offset by lower common alloy shipments in the US and Europe. Aerospace demand remains strong.
Extruded and End Products � ATOI for the segment was up slightly to $23 million. Slightly lower volumes in the U.S. and Europeanextrusions markets were offset by better results from the Russian assets.
Engineered Solutions - ATOI for the segment was $32 million, down $28 million from the second quarter. Roughly half of the decline inprofitability was associated with non-operational issues, including the increased expense from a litigation judgment. Operationally, continuedstrong performance from Alcoa Fastening Systems was offset by seasonal weakness in the automotive markets and continued product launchissues at Alcoa Fujikura Automotive.
Packaging and Consumer - ATOI was $13 million lower, primarily because of seasonally lower volumes in the consumer products business.Compared to the year ago quarter, ATOI declined by $6 million after tax due to higher metal costs.
ATOI to Net Income Reconciliation
The largest variances in reconciling items were in the �restructuring and other charges� and �other� line items. The change in �Restructuringand Other Charges� and the �other� line items is due to the non-recurrence of certain second quarter items.
Alcoa will hold its quarterly conference call at 5:00 PM Eastern Time on October 10th to present the quarter�s results. The meeting will bewebcast via alcoa.com. Call information and related details are available at www.alcoa.com under �Invest.�
About Alcoa
Alcoa is the world�s leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in allmajor aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation andindustrial markets, bringing design, engineering, production and other capabilities of Alcoa�s businesses to customers. In addition toaluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap® foils and plastic wraps, Alcoa® wheels,and Baco® household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electricaldistribution systems for cars and trucks. The company has 131,000 employees in 43 countries and has been named one of the top three mostsustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com
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Forward Looking Statement
Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving knownand unknown risks and uncertainties that may cause actual results, performance or achievements of Alcoa to be different from those expressedor implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: (a) material adverse changes in economic or aluminum industry conditions generally, including global supply anddemand conditions and prices for primary aluminum, alumina and other products; (b) material adverse changes in the markets served byAlcoa, including the transportation, building, construction, distribution, packaging, industrial gas turbine and other markets; (c) Alcoa�sinability to achieve the level of cost savings, productivity improvements or earnings growth anticipated by management, whether due tosignificant increases in energy, raw materials or employee benefits costs, labor disputes or other factors; (d) Alcoa�s inability to realize thefull extent of the expected savings or benefits from its restructuring activities or to complete such activities in accordance with its plannedtimetable; (e) Alcoa�s inability to complete its expansion projects and investment activities outside the U.S. as planned and by targetedcompletion dates, or to assure that the anticipated integration costs at its recently acquired Russian facilities will not exceed its estimates;(f) unfavorable changes in laws, governmental regulations or policies, currency exchange rates or competitive factors in the countries in whichAlcoa operates; (g) significant legal proceedings or investigations adverse to Alcoa, including environmental, product liability, safety andhealth and other claims; and (h) the other risk factors summarized in Alcoa�s Form 10-K for the year ended December 31, 2004, Forms 10-Qfor the quarters ended March 31, 2005 and June 30, 2005 and other reports filed with the Securities and Exchange Commission.
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Alcoa and subsidiariesCondensed Statement of Consolidated Income (unaudited)
(in millions, except per-share, share, and metric ton amounts)
Quarter ended
September 30
2004
June 30
2005
September 30
2005
Sales$5,818 $6,698 $6,566
Cost of goods sold4,664 5,414 5,405
Selling, general administrative, and other expenses300 348 317
Research and development expenses43 47 51
Provision for depreciation, depletion, and amortization294 315 321
Restructuring and other charges4 260 7
Interest expense66 87 96
Other income, net(55 ) (347 ) (92 )
Total costs and expenses5,316 6,124 6,105
Income from continuing operations before taxes on income502 574 461
Provision for taxes on income138 48 112
Income from continuing operations before minority interests� share364 526 349
Less: Minority interests� share72 60 59
Income from continuing operations292 466 290
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Loss from discontinued operations(9 ) (6 ) (1 )
NET INCOME$283 $460 $289
Earnings (loss) per common share:
Basic:
Income from continuing operations$.33 $.53 $.33
Loss from discontinued operations(.01 ) � �
Net income$.32 $.53 $.33
Diluted:
Income from continuing operations$.33 $.53 $.33
Loss from discontinued operations(.01 ) (.01 ) �
Net income$.32 $.52 $.33
Average number of shares used to compute:
Basic earnings per common share869,953,918 872,149,447 872,515,797
Diluted earnings per common share876,526,090 877,950,254 876,583,063
Shipments of aluminum products (metric tons)1,275,000 1,401,000 1,424,000
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Alcoa and subsidiariesCondensed Statement of Consolidated Income (unaudited)
(in millions, except per-share, share and metric ton amounts)
Nine months ended
September 30
2004
September 30
2005
Sales$17,257 $19,490
Cost of goods sold13,630 15,758
Selling, general administrative, and other expenses925 990
Research and development expenses129 144
Provision for depreciation, depletion, and amortization883 949
Restructuring and other charges(22 ) 312
Interest expense199 261
Other income, net(202 ) (475 )
Total costs and expenses15,542 17,939
Income from continuing operations before taxes on income1,715 1,551
Provision for taxes on income482 349
Income from continuing operations before minority interests� share1,233 1,202
Less: Minority interests� share197 179
Income from continuing operations1,036 1,023
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Income (loss) from discontinued operations6 (14 )
NET INCOME$1,042 $1,009
Earnings (loss) per common share:
Basic:
Income from continuing operations$1.19 $1.17
Income (loss) from discontinued operations.01 (.01 )
Net income$1.20 $1.16
Diluted:
Income from continuing operations$1.18 $1.17
Income (loss) from discontinued operations.01 (.02 )
Net income$1.19 $1.15
Average number of shares used to compute:
Basic earnings per common share869,650,782 872,054,221
Diluted earnings per common share877,393,050 877,743,271
Common stock outstanding at the end of the period870,152,606 872,706,561
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Shipments of aluminum products (metric tons)3,833,000 4,115,000
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Alcoa and subsidiariesCondensed Consolidated Balance Sheet (unaudited)
(in millions)
December 31
2004
September 30
2005
ASSETS
Current assets:
Cash and cash equivalents$ 457 $ 532
Receivables from customers, less allowances:$86 in 2004, and $82 in 2005 2,694 3,084
Other receivables256 297
Inventories2,968 3,512
Deferred income taxes279 197
Prepaid expenses and other current assets788 1,075
Total current assets7,442 8,697
Properties, plants and equipment, at cost25,794 26,838
Less: accumulated depreciation, depletion and amortization13,244 13,828
Net properties, plants and equipment12,550 13,010
Goodwill6,412 6,299
Investments2,066 1,263
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Other assets3,597 3,973
Assets held for sale542 369
Total assets$ 32,609 $ 33,611
LIABILITIES
Current liabilities:
Short-term borrowings$ 267 $ 270
Commercial paper630 1,162
Accounts payable, trade2,218 2,400
Accrued compensation and retirement costs1,013 1,007
Taxes, including taxes on income1,018 932
Other current liabilities1,073 1,399
Long-term debt due within one year57 47
Total current liabilities6,276 7,217
Long-term debt, less amount due within one year5,345 5,386
Accrued pension benefits1,513 1,284
Accrued postretirement benefits2,150 2,119
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Other noncurrent liabilities and deferred credits1,727 1,762
Deferred income taxes789 868
Liabilities of operations held for sale93 28
Total liabilities17,893 18,664
MINORITY INTERESTS1,416 1,302
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS� EQUITY
Preferred stock55 55
Common stock925 925
Additional capital5,775 5,742
Retained earnings8,636 9,124
Treasury stock, at cost(1,926 ) (1,863 )
Accumulated other comprehensive loss(165 ) (338 )
Total shareholders� equity13,300 13,645
Total liabilities and equity$ 32,609 $ 33,611
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Alcoa and subsidiariesCondensed Statement of Consolidated Cash Flows (unaudited)
(in millions)
Nine months ended September 30
2004 2005
CASH FROM OPERATIONS
Net income$ 1,042 $ 1,009
Adjustments to reconcile net income to cash from operations:
Depreciation, depletion, and amortization889 950
Change in deferred income taxes(88 ) (116 )
Equity (income) loss, net of dividends(49 ) 48
Noncash restructuring and other charges(22 ) 312
Net gain on early retirement of debt and interest rate swaps(58 ) �
Gains from investing activities � sale of assets(7 ) (409 )
Provision for doubtful accounts19 14
(Income) loss from discontinued operations(6 ) 14
Minority interests197 179
Other28 (28 )
Changes in assets and liabilities, excluding effects of acquisitions and divestitures:
Increase in receivables(334 ) (575 )
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Increase in inventories(459 ) (511 )
Increase in prepaid expenses and other current assets(142 ) (26 )
Increase in accounts payable and accrued expenses401 289
Increase (decrease) in taxes, including taxes on income183 (41 )
Cash paid on early retirement of debt and interest rate swaps(52 ) �
Cash paid on long-term aluminum supply contract� (93 )
Pension contributions� (300 )
Net change in noncurrent assets and liabilities(222 ) (74 )
Net change in net assets held for sale50 �
CASH PROVIDED FROM CONTINUING OPERATIONS1,370 642
CASH PROVIDED FROM (USED FOR) DISCONTINUED OPERATIONS38 (5 )
CASH FROM OPERATIONS1,408 637
FINANCING ACTIVITIES
Net changes to short-term borrowings(12 ) 4
Common stock issued for stock compensation plans69 27
Repurchase of common stock(68 ) �
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Dividends paid to shareholders(392 ) (393 )
Dividends paid to minority interests(115 ) (74 )
Net change in commercial paper730 532
Additions to long-term debt138 272
Payments on long-term debt(1,422 ) (249 )
CASH (USED FOR) PROVIDED FROM FINANCING ACTIVITIES(1,072 ) 119
INVESTING ACTIVITIES
Capital expenditures(668 ) (1,376 )
Acquisition of AFL minority interest� (176 )
Acquisitions, net of cash acquired� (257 )
Proceeds from the sale of assets355 90
Sale of investments� 1,081
Change in short-term investments and restricted cash20 (17 )
Other(56 ) (26 )
CASH USED FOR INVESTING ACTIVITIES(349 ) (681 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH(2 ) �
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Net change in cash and cash equivalents(15 ) 75
Cash and cash equivalents at beginning of year576 457
CASH AND CASH EQUIVALENTS AT END OF PERIOD$ 561 $ 532
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Alcoa and subsidiariesSegment Information (unaudited) *
(in millions, except metric ton amounts and realized prices)
1Q04 2Q04 3Q04 4Q04 2004 1Q05 2Q05 3Q05
Consolidated Third-Party Revenues:
Alumina$463 $486 $490 $536 $1,975 $505 $533 $531
Primary Metals878 959 930 1,039 3,806 1,089 1,124 1,204
Flat-Rolled Products1,450 1,490 1,520 1,502 5,962 1,655 1,763 1,679
Extruded and End Products943 1,027 1,028 976 3,974 1,037 1,153 1,092
Engineered Solutions1,149 1,189 1,106 1,159 4,603 1,241 1,286 1,246
Packaging and Consumer660 762 737 764 2,923 708 827 806
Total (1)$5,543 $5,913 $5,811 $5,976 $23,243 $6,235 $6,686 $6,558
1Q04 2Q04 3Q04 4Q04 2004 1Q05 2Q05 3Q05
Consolidated Intersegment Revenues:
Alumina$338 $349 $341 $390 $1,418 $393 $439 $424
Primary Metals1,038 1,129 1,039 1,129 4,335 1,303 1,215 1,108
Flat-Rolled Products23 23 25 18 89 34 36 29
Extruded and End Products15 12 14 13 54 14 19 14
Engineered Solutions� � � � � � � �
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Packaging and Consumer� � � � � � � �
Total$1,414 $1,513 $1,419 $1,550 $5,896 $1,744 $1,709 $1,575
1Q04 2Q04 3Q04 4Q04 2004 1Q05 2Q05 3Q05
Consolidated Third-Party Shipments (Kmt):
Alumina1,838 1,981 2,030 2,213 8,062 1,923 1,951 2,017
Primary Metals469 472 459 482 1,882 487 520 590
Flat-Rolled Products515 517 521 493 2,046 509 560 543
Extruded and End Products225 235 225 210 895 221 237 224
Engineered Solutions34 33 31 35 133 39 38 36
Packaging and Consumer38 41 39 46 164 34 46 31
Total Aluminum1,281 1,298 1,275 1,266 5,120 1,290 1,401 1,424
Alcoa��s average realized price-Primary (mt)$1,783 $1,867 $1,869 $1,942 $1,867 $2,042 $1,977 $1,963
1Q04 2Q04 3Q04 4Q04 2004 1Q05 2Q05 3Q05
After-Tax Operating Income (ATOI):
Alumina$127 $159 $169 $177 $632 $161 $182 $156
Primary Metals192 230 188 198 808 225 187 168
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Flat-Rolled Products66 59 62 59 246 75 70 81
Extruded and End Products (2)17 30 28 (2 ) 73 10 20 23
Engineered Solutions62 69 39 41 211 59 60 32
Packaging and Consumer29 48 34 30 141 16 41 28
Total$493 $595 $520 $503 $2,111 $546 $560 $488
1Q04 2Q04 3Q04 4Q04 2004 1Q05 2Q05 3Q05
Reconciliation of ATOI to consolidated net income:
Total ATOI$493 $595 $520 $503 $2,111 $546 $560 $488
Impact of intersegment profit adjustments23 8 3 18 52 17 (16 ) (2 )
Unallocated amounts (net of tax):
Interest income7 5 8 6 26 7 9 12
Interest expense(41 ) (45 ) (44 ) (46 ) (176 ) (51 ) (56 ) (62 )
Minority interests(51 ) (74 ) (72 ) (48 ) (245 ) (60 ) (60 ) (59 )
Corporate expense(74 ) (63 ) (68 ) (78 ) (283 ) (69 ) (73 ) (82 )
Restructuring and other charges31 (4 ) (3 ) (1 ) 23 (30 ) (172 ) (5 )
Discontinued operations10 5 (9 ) (71 ) (65 ) (7 ) (6 ) (1 )
Other(43 ) (23 ) (52 ) (15 ) (133 ) (93 ) 274 �
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Consolidated net income$355 $404 $283 $268 $1,310 $260 $460 $289
* Segment information for all prior periods has been restated to reflect the change in segments due to a global realignment within thecompany, effective January 2005.
(1) The difference between the segment total and consolidated third-party revenues is in Corporate.(2) The first quarter 2005 ATOI amount has been modified to correct a tax adjustment that should have been reflected in Corporate.
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